Planning A Financial Life Together
Getting married is a time of excitement and planning
. When you get married you are making a commitment to the other person through everything.
This includes illness, good times, and even financial struggles. It has been found that disputes over finances are one of the top things that cause divorce today.
It is critical that you plan ahead to make sure that your finances will go well and that you will be able to cover your expenses. It is also critical that you look at yourself and where you could have cut expenses instead of blaming the problems all on the other person.
This principle applies to all aspects of marriage. You are going to run into problems the minute you start blaming everything that goes wrong on your spouse.
There are many financial things you should consider as you begin your lives together. For example, in general most couples end up paying $1500 more in taxes once they make the official commitment to one another.
You will want to make sure that you have enough to cover this amount when April rolls around. Most newlyweds who are students still do not have to pay very many taxes if any.
However, it is good to keep this in mind. This penalty is a result of pooling two incomes.
In addition to discussing taxes you should also discuss your honeymoon finances before you leave on that trip. Be sure that you will not be spending your entire savings on this one vacation.
Your honeymoon will hopefully be happy whether you retreat to a cabin in the woods or go on an expensive cruise. However, your life after the honeymoon will be a struggle if you do not have any funds to fall back on.
Hopefully, you are both aware of each other's debt before you are committed to one another. If you have made that commitment, it is better to ask now rather than later so that you know what you will have to work through together.
Discuss your debt and decide which part of your collective debt is the most important in being paid off first. Usually, it is most important to pay off high interest credit cards first.
Once you have paid this off, work on paying the next highest interest debt off. Be sure that you can cover the minimum payments on all of the other things you have to pay however.
You will be able to feel a sense of accomplishment as a couple as you pay off these debts and become financially free. It is also important that you regularly discuss your finances to make sure you are on track in accomplishing your goals and that you are working together.
Make adjustments as needed if necessary. Talk about upcoming major purchases that you need to save up for and how those will affect minor purchases.
Be sure to ask before you make expensive purchases so that resentment does not build between you and your love. He or she should be more important to you than any material thing you may want, even though if you work together you should be able to work towards the purchase of the material things you want.
As newlyweds, there are going to be many material things that you will want to stock your home with. However, it is important to realize that your parents worked hard for the things they have in their home.
You do not need everything your parents had right away. It is much more important to build up a savings account.
Emergencies are bound to come along that will negatively affect your relationship with your spouse and your ability to support your children if you are unable to pay for them because you do not have a savings account.
As newlyweds, it is a good idea to strive to have at least $1000 in savings. Then, as your ability to save more increases when you pay off debt or get a better paying job, be sure to increase the goal amount to keep in your savings account.
In the end, you goal should be to save at least three months of household expenses. Then, strive for six months of household expenses.
This will come in handy if you ever lose your job and need something to fall back on while you strive to find another job. As you plan your life together, do not overlook your financial life as it may be one of the best indicators of a healthy marriage.
by: Jack Landry
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